BSkyB could merge with either Vodafone or O2 this year, according to analysts at UBS.
Analyst Polo Tang said, in a UBS briefing note this week, that BSkyB could be looking to make a move this year, which could involve merging with the UK arms of either Vodafone or Telefonica.
He said that ‘the move to quad-play across Europe could also see BSkyB merge with either Vodafone UK or O2 UK. Such a deal could generate significant cost and revenue synergies that could be worth 248-264p per share. Alternatively, Sky Europe (a subsidiary of BSkyB could merge with either Vodafone or Telefonica to produce a European quad-play operator.’
UBS moved its rating from neutral to buy and its price target from 880p to 1100p, saying the outlook was positive.